LONDON (ShareCast) - Real estate investment trust Segro has agreed to sell a portfolio of six industrial estates to Orchard Street Investment Management for £113.8m.
The group said the portfolio of properties, all of which are in the UK, generates a passing rent of £6.4m, rising to £7.4m on expiry of rent-free periods and allowing for rent guarantees, adding that price reflects a premium in excess of 10% compared to book value at 30 June.

"This disposal marks another important milestone as we continue to reshape our portfolio, leaving the UK non-core asset disposal programme virtually complete," said Phil Redding, the group's chief investment officer.

"The proceeds of this transaction will be used to reduce our net debt in the short term and will help fund our accretive UK and continental European development pipeline which should generate a fully-let yield on development cost of over 9%."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE